ASX closes 0.54% lower due to sell-off in tech and real estate stocks

Market Reports

by Peter Milios

On Tuesday, the Australian stock market experienced a decline primarily due to a sell-off in technology and real estate stocks. This drop is part of a broader trend where investors are adjusting their portfolios in anticipation of an extended period of higher interest rates. The trigger for this decline was the US 10-year Treasury bond yields, which reached their highest level since October 2007 at 4.56 percent on Monday night.

As a result of this market sentiment, the benchmark S&P/ASX 200 Index fell by 38.3 points, or 0.54 percent, closing at 7038.2. This decline was widespread, affecting nine out of the 11 industry sectors. The All Ordinaries index also dropped by 40.3 points to 7238.3.

Futures

The Dow Jones futures are pointing to a fall of -140 points.

The S&P 500 futures are pointing to a fall of -21.25 points.

The Nasdaq futures are pointing to a fall of -88.25 points.

The SPI futures are down 47 points.

Best and worst performers

The best-performing sector was Health Care, up 1.08 per cent. The worst-performing sector was Information Technology, down 1.93 per cent.

The best-performing large cap was Pro Medicus (ASX:PME), closing 12.39 per cent higher at $80.01. It was followed by shares in ResMed (ASX:RMD) and Steadfast Group (ASX:SDF).

The worst-performing large cap was Xero (ASX:XRO), closing 2.56 per cent lower at $114.00. It was followed by shares in IDP Education (ASX:IEL) and Mineral Resources (ASX:MIN).

Asian markets

Japan's Nikkei has lost -1.11 per cent.

Hong Kong's Hang Seng has lost -0.95 per cent.

China's Shanghai Composite has lost 0.34 per cent.

Company news

Lake Resources (ASX:LKE) has announced a successful completion of the lithium carbonate test program, which is an important milestone towards the completion of DFS. In response, Lake CEO David Dickson said, “most DLE lithium carbonate announcements are based on a few kilograms of carbonate produced on a lab bench scale unit; we’ve produced more lithium carbonate than most DLE projects under development. This gives us great confidence in our process.” Shares closed 3.03 per cent higher at 17 cents.

Talon Energy (ASX:TPD) has announced that the Walyering gas field development, in which Talon owns 45 per cent, has commenced production. In response, Mr Colby Hauser, Talon’s Managing Director and Chief Executive Officer commented: “Transitioning from Explorer to Producer has been an important milestone for the business. We look forward to working with Strike and supplying firm gas into our gas sales agreement with Santos.” Shares closed 2.56 per cent lower at 19 cents.

Actinogen Medical (ASX:ACW) announced enhancement of the design of the XanaMIA Phase 2b trial in patients with mild-to-moderate Alzheimer’s disease to reduce the cost and time to initial results. The current FDA-approved three-arm trial was designed to confirm the safety, pro-cognitive and clinical benefits of Xanamem® and explore two dose levels, in what is called ‘dose-ranging.’ Shares closed 5.26 per cent higher at 2 cents.

Commodities and the dollar

Gold is trading at US$1,930.80 an ounce.

Iron ore is 3.9 per cent lower at US$118.80 a tonne.

Iron ore futures are pointing to a -1.9 per cent fall.

Light crude is trading $-0.63 lower at US$89.05 a barrel.

One Australian dollar is buying 64.03 US cents.

Peter Milios

Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.

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